Sunday, May 29, 2022
Home Business Palm oil embargo: soon more Nutella on the shelves?

Palm oil embargo: soon more Nutella on the shelves?

It’s a decision that set the vegetable oil market on fire. Two weeks ago, the world’s largest producer of palm oil suspended all exports. Indonesia has been facing soaring prices on its domestic market for several months, recalls , and has decided to ban them until prices come down from 20,000 rupees (1.31 euro per litre) to 14,000 rupees (0.91 euro). A hard blow for many industries in the world that use this palm oil, starting with Europe, which imports nearly 50%.

One of the manufacturers most affected by this palm oil is none other than the Ferrero group, which uses it in the famous Nutella. Its spread contains nearly 20%, deciphers, what to worry about a possible shortage? Not so sure when you know that Ferrero only imports 20% from Indonesia and 80% from Malaysia. On the other hand, are there other shortages to be feared? No, according to the consultant at Agritel, Arthur Poirier. “The strategy of the Indonesian government has been to relax the price market locally, so there is no reason for this to continue,” he said.

China and India affected

The specialist specifies that the Indonesian decision is only temporary and that it should allow the country to “find two million tonnes in stocks”. The logistical problems should be resolved within the next three weeks, he said. As far as manufacturers are concerned, there is nothing to fear for the moment, since they have stocks. If they tap into it, note . They will just have to buy more in June. According to Arthur Poirier, everything should be back “to normal” in June.

On the other hand, the situation is a little more complicated for countries like India which depends on Indonesian oil and imports 33%. It is worse in China, where it exceeds 40%. Pakistan and Bangladesh are also affected. While the war in Ukraine weighs heavily on the shortage of oil in the world, on April 27, the boss of Leclerc had estimated that the shelves were empty in the store mainly because of restaurateurs such as chip shops who “buy too much” by fear of missing out. “There is no shortage but there are ruptures,” he said.

LEAVE A REPLY

Please enter your comment!
Please enter your name here